Stock Indices Reverse And Test Important Support

As I have discussed in the recent Briefings, volume had to increase if the rally was to be sustained, otherwise we would see another rotation down. Today, the Indices gapped higher, but volume was so low it was unsustainable and price declined. At the end of the day, the Indices all reached what is now very important short-term support. Trading and closing below that support will suggest a transition to an intermediate-term decline, which will be greater in degree of time and price. Because the market reached a point of being oversold today, watch for early morning divergences if price continues lower.

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